Bitkey Introduces Inheritance Feature for Bitcoin, Aiming to Simplify Multi-Generational Asset Transfer

Bitcoin is becoming a multi-generational asset. That means people are looking for secure and easy ways to pass it down. Bitkey, a self-custody wallet from Block, Inc., has a new inheritance feature to help with this. It’s set to launch widely in January 2025.

This feature makes it simple and secure for users to transfer their bitcoin to loved ones while keeping control of their assets.

“Bitcoin is a multi-generational asset, and we believe Bitkey should be too,” says Jason Karsh, the Business Lead for Bitkey. “With this inheritance solution, we give customers a safe way to pass their assets on to the next generation.”

The process is straightforward. Users can invite a beneficiary through the Bitkey app. An invite link is sent, and once accepted, the beneficiary can create an inheritance plan. Importantly, they can’t access the benefactor’s wallet or see how much bitcoin they might inherit.

A key feature is a six-month waiting period. If a beneficiary wants to make a claim, the benefactor receives notifications during this time. This allows them to cancel any fraudulent or accidental claims, keeping their funds secure.

Karsh emphasizes the ease of this innovation: “Self-custody solutions today often require multiple products or complicated instructions. We’re removing those barriers. This process is accessible to anyone, even those who aren’t tech-savvy.”

When Bitkey was developed, simplicity was the main goal. The team recognized challenges with traditional seed phrases. So, they introduced a multi-signature (multi-sig) approach. This system divides control among three keys: one in a hardware wallet, one in the Bitkey app, and one on Block’s server. Users only need two of these keys to recover their assets. This means they stay in control, even if Block goes out of business.

The multi-sig structure also applies to the inheritance feature, ensuring security and peace of mind. “We want to make bitcoin easy to understand, use, and recover,” Karsh adds. “We’ve thought carefully about the challenges people face, especially when moving their bitcoin off exchanges, and we’re addressing them directly.”

Bitkey’s inheritance feature is just one of many designed to attract a wider audience to bitcoin. The company aims to onboard the next billion people into self-custody. By focusing on ease of use, Bitkey is positioning itself as the go-to wallet for everyday users.

This new feature allows customers to set a beneficiary for their bitcoin holdings. It offers a level of planning that’s rare in self-custody. “Being able to assure someone you trust that they will inherit your bitcoin—without giving up your self-sovereignty—is a game-changer,” Karsh notes.

Other self-custody solutions are also emerging to meet the diverse needs of bitcoin users. Hardware wallets like Trezor and Ledger have been staples, providing offline storage to protect private keys from online threats. However, Bitkey focuses exclusively on bitcoin, ensuring a streamlined experience for bitcoin holders.

Software wallets like Electrum offer lightweight, open-source options that let users maintain control over their private keys without relying on third parties. These solutions highlight the importance of personal responsibility in managing digital assets, aligning with the core principles of decentralization and security.

Bitkey doesn’t stop at inheritance. The wallet includes features like a transaction reporting tool to track gains or losses and partnerships with exchanges like Coinbase for easy buying and selling. At no point do users lose custody of their bitcoin, ensuring complete control.

Operating in over 90 countries, Bitkey continues to expand its offerings to meet the needs of bitcoin users worldwide. “We’re just trying to enable bitcoin to grow and succeed, and this is one of the primary ways to help consumers do that. Be your own bank in the most self-sovereign way possible,” Karsh explains.

The launch of Bitkey’s inheritance feature is a significant step in self-custody. By addressing a major concern in the bitcoin community—how to preserve assets for future generations—Bitkey is helping to solidify bitcoin’s status as a multi-generational asset.

With simplicity and security at its core, Bitkey is paving the way for a future where self-custody is accessible to everyone. “This is about building a product that lasts—not just for today, but for generations to come,” Karsh concludes.